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000963:SSEHuadong Medicine Co., Ltd Analysis

Data as of 2026-07-20 - not real-time

CN¥31.34

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Huadong Medicine is trading just below a clear resistance level while the 20‑day and 50‑day moving averages sit beneath the 200‑day average, signalling a bearish longer‑term trend. Technical momentum is mixed – the MACD histogram is positive and the RSI hovers in neutral territory, yet price action remains constrained by the nearby resistance. Volatility is elevated and market sentiment is at an extreme greed level, suggesting heightened short‑term speculative pressure.
Fundamentally, the company delivers modest revenue growth, solid gross and operating margins, and a low debt‑to‑equity profile, supporting its ability to sustain a ~3% dividend yield. The PE multiple is well below the industry average, though the DCF‑derived fair value sits under the current market price, while analyst consensus targets remain substantially higher, indicating a potential upside if earnings continue to improve.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price approaching resistance with limited upside
  • Bearish alignment of short‑term moving averages
  • Bullish MACD histogram providing a counterbalance

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Attractive dividend yield relative to peers
  • PE multiple below industry average
  • Analyst price targets indicating upside potential

Long Term

> 3 years
Positive
Model confidence: 7/10

Key Factors

  • Consistent cash flow generation and low leverage
  • Sustainable payout ratio supporting dividend continuity
  • Steady earnings growth underpinning long‑term valuation

Key Metrics & Analysis

Financial Health

Revenue Growth4.20%
Profit Margin7.95%
P/E Ratio15.7
ROE13.80%
ROA6.48%
Debt/Equity8.28
P/B Ratio2.1
Op. Cash FlowCN¥4.2B
Free Cash FlowCN¥2.4B
Industry P/E28.7

Technical Analysis

TrendBearish
RSI58.1
SupportCN¥25.63
ResistanceCN¥32.50
MA 20CN¥29.41
MA 50CN¥29.48
MA 200CN¥36.14
MACDBullish
VolumeStable
Fear & Greed Index88.13

Valuation

Fair ValueCN¥22.63
Target PriceCN¥47.12
Upside/Downside50.34%
GradeOvervalued
TypeBlend
Dividend Yield3.09%

Risk Assessment

Beta0.05
Volatility49.53%
Sector RiskMedium
Reg. RiskHigh
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.